James Barrow Chops Holding of GE, ITT, More

Changes in the third quarter portfolio of Barrow, Hanley, Mewhinney & Strauss, led by Guru James Barrow, include 24 reductions and sells combined, including high-impact decreases of his positions in General Electric Co. (NYSE:GE), ITT Corp. (NYSE:ITT) and the selling of Spectra Energy Corp. (NYSE:SE), among many others. James Barrow’s updated portfolio lists 163 stocks, four of them new, and a total value at $62.5 billion. The quarter-over-quarter turnover is 6%. Barrow’s portfolio is weighted with financial services at 23.7%, health care at 17.8% and technology at 15.7%. He is averaging a return of 19.17% over 12 months.

Here’s a look at Barrow’s third quarter selling highlights and the latest company earnings.

Up 31% over 12 months, General Electric Co. has a market cap of $273.37 billion; its shares trade with a P/E ratio of 15.60. The dividend yield is 2.80%.

Company Earnings: The company reported financial results for the third quarter of 2013 with operating earnings down 3% at $3.7 billion. Earnings of $0.36 per share were reported as flat with the same quarter of 2012.

Guru Action: As of Sept. 30, 2013, James Barrow reduced his position by 80.07%, selling 26,506,437 shares at an average price of $23.93 per share, gaining 12.9%. His current shares are 6,595,590.

The current share price is around $27.02, with a change from average up 13%.

Across a five-year history, James Barrow averaged a gain of 50% buying 45,137,113 shares at an average price of $18.07. Selling, he averaged a gain of 18% on 50,167,123 shares at an average price of $22.87 per share.

Up 26% over 12 months, Spectra Energy Corp., a midstream oil and gas company, has a market cap of $22.9 billion; its shares trade with a P/E ratio of 24.30. The dividend yield is 3.60%.

Company Earnings: The company reported financial results for the third quarter of 2013 with a net income of $283 million for the quarter, up from $179 million in the same quarter of 2012. Earnings of $0.42 per diluted share were also up, compared to $0.27 in the year-ago quarter.

Guru Action: As of Sept. 30, 2013, James Barrow sold out his SE holding. He sold 12,487,411 shares at an average price of $34.55 per share, losing 1.1%, his first loss in five years of pure gains.

The current share price is around $34.18, with a change from average down 1%.

James Barrow’s highest gains of 101.2%, 141.6% and 118.4% were in the fourth quarter of 2008 and the first and second quarters of 2009, respectively.

Up 90% over 12 months, ITT Corp., a manufacturer of engineered components and industrial solutions, has a market cap of $3.72 billion; its shares trade with a P/E ratio of 25.20. The dividend yield is 1.00%.

Company Earnings: The company reported financial results for the third quarter of 2013 with revenue of $624 million, up 16%. ITT reported GAAP earnings of $4.71 per share for the quarter, with adjusted earnings from continuing operations up by 23% at $0.54 per share.

Guru Action: As of Sept. 30, 2013, James Barrow reduced his position by 94.64%, selling 7,018,403 shares at an average price of $33.33 per share, gaining 23.1%. His current shares are 397,727.

The current share price is around $41.02, with a change from average up 23%.

Across a five-year history, James Barrow averaged a gain of 101% buying 2,431,665 shares at an average price of $20.45 per share. Barrow averaged a gain of 30% on 8,016,828 shares sold at an average price of $31.50 per share.

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